The Tri-County Regional Water Distribution District Board unanimously voted to adjust the company 401K retirement plan from matching each contribution up to 3 percent to measuring the plan through vesting.

Steve Smith, who oversees the plan, said the change makes the 401K plan more flexible.

"The fact that it's a match encourages them (employees) to participate," Smith said, explaining the plan would now match up to 6 percent dollar for dollar of what an employee contributes.

The report passed out explaining the change reads, "Vesting is measured in computation periods, usually every plan year or calendar year. Employees must earn credit for a year of service for vesting purposes if they work at least 1,000 hours in the vesting computation period. However the employer may require less hours for such credit.

"Years of service for vesting purposes may begin at the effective date of a new qualified retirement plan, or it may begin at some prior date. In addition, the employer may specify a minimum age (no less than age 18) in counting years of service for vesting purposes."

The board was presented with four options and chose the one, which states employer matching contributions must vest within six years. The funds must vest at least as rapidly as 20 percent per year beginning with an employee's second year of service, which is called graded vesting. The most common graded vesting tables are the following:

n 20 percent per year, beginning with year one, and fully vested at year five; and

n 20 percent per year, beginning with year two, fully vested at year six.

According to the Tri-County Regional Water Distribution District manager's report, the Kingston/Rover Project continues to be slow in completing the items on the final punch list regarding cleanup on the project. However, the goal is to finish the work by Sept. 14, which is when the 11th month inspection by United States Department of Agriculture (USDA) Rural Development is.

The report says the Gunter Mountain Project is complete other than some remaining cleanup by the contractor. Every part of that extension is now online and performing as expected. There has not been anymore vandalism to the tank and only one condemnation has to be settled. That case is scheduled in court Oct. 10 to decide on damages.

Services

Danny Thompson, district operations and maintenance supervisor, announced there were 15 new services in July. He said the Tri-County purchased 76,814,000 gallons of water and approximately 6,300,000 were used by Atkins.